A consortium of economically aligned nations known as BRICS is reportedly finalizing the details of a new currency as part of their efforts to reduce dependence on the US dollar. South African Ambassador to China, Siyabonga Cyprian Cwele, has stated that BRICS members will convene this month to discuss the specifics of this currency, according to the Chinese state-backed Global Times. The main topic of discussion will be whether a digital currency would be an effective tool for facilitating global trade and settlement while minimizing the risk of sanctions.

Cwele emphasized the importance of supporting the use of local currencies within the BRICS nations, as well as promoting open financial data sharing. Additionally, the group is exploring the potential of digital currencies as a means to establish multiple and stable mechanisms for trade and settlement, with the aim of reducing the risks associated with relying solely on a single currency.

The push for a new currency comes at a time of expansion for BRICS, which initially consisted of Brazil, Russia, India, China, and South Africa. Last year, the organization welcomed Saudi Arabia, Iran, Ethiopia, Egypt, and the United Arab Emirates as new members. Furthermore, Cwele revealed that more than 20 additional countries have expressed their interest in joining the consortium.

In addition to economic considerations, BRICS leaders are also focused on creating inclusive guidelines for admitting new members that address various issues beyond economics and ensure non-discrimination. This demonstrates their commitment to fostering a diverse and well-rounded organization.

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